Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) just released its new BlackBerry Z10 handset in the U.S. on the AT&T Inc. (NYSE:T) network today, and analysts are making predictions about how well it will do. There’s certainly no doubt that Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) faces an uphill battle in the U.S., and analysts at Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) say their checks on their sales show an “euphoria waning, even on home turf.”
The analysts said they finished another round of checks in the U.K. and in Canada, including 150 different stores, not one of which was sold out. They also found only a few sales representatives recommended the BlackBerry Z10 without being asked about it. Sales reps in the U.K. were found to be less likely to recommend the handset than those in Canada.
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Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) analysts also said that two Canadian carriers have reduced their prices on the BlackBerry Z10, which may mean that the demand is falling and pressure on the company’s margins is ahead. However, no stores that they checked reported any customer returns due to dissatisfaction with the device.
Analysts are concerned that price erosion may become a big problem for RIM, but they also say that BlackBerry users who are truly faithful to the original keyboard design may simply be waiting for the Q10 to come out because it features the traditional BlackBerry design.
Analysts at Deutsche Bank AG (ETR:DBK) (FRA:DBK) (NYSE:DB) “continue to remain cautious” on shares of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) and are maintaining their Hold rating and $8 per share price target on the stock.
Shares of Research In Motion Ltd (NASDAQ:BBRY) (TSE:BB) were down 7.74% to $14.91 in Friday’s trading session.